July 6, 2022, 0 Comments
Retention Issues? How to Know If You Are Properly Compensating Your HR Employees
Employee retention is a problem for most employers. It costs significant amounts of time and money to recruit, onboard, and train new hires. This is especially true during The Great Recession.
One of the most effective ways to encourage employees to stay is through compensation. Properly paying your employees helps them feel valued and respected. This encourages them to remain with your company long-term.
Implement these tips to decrease turnover among your HR employees by ensuring they are properly compensated.
Remain Current with the Market
Like all other open positions, use recent salary surveys and benchmarking for HR employee compensation. Then, focus on how each of your employee’s job duties and responsibilities compares with the average salary for a role in your industry and geographic area. This lets you know whether you are paying more or less than other companies for a similar position. It also helps your employee understand whether they are being adequately compensated for their contributions.
Ensure Compensation Aligns with Business Strategy
Check that your HR employees are being paid in line with your business goals. Recognize that company revenue and financial position impact the compensation structure, the type of talent you hire, and the level of experience needed to accomplish your objectives.
Talk with Your HR Employees
Have a private discussion with each of your HR employees. Find out whether they feel their compensation is competitive. Include how the employee’s skills and experience factor into their compensation. If appropriate, bring up the job market and the company’s ability to compensate its employees. This may have an impact if the employee feels they are not being fairly compensated.
Point Out Each Employee’s Total Compensation
Remind your HR employees that compensation involves more than just salary. It also includes cash and non-cash incentives, benefits, and learning and development opportunities. These total compensation statements show the overall investment your company has in each employee. This can help show that an employee is being fairly compensated for their efforts and results.
Suggest Ways to Make Up for Lower Compensation
If an employee feels their compensation doesn’t align with the value they provide, find nonfinancial ways to offset the difference. This may include additional flexibility, benefits, perks, or growth opportunities. Include transparent policies and programs to show you value your HR employees’ needs.
Need to Hire HR Employees?
If your HR employees are leaving the company, it may be due to low compensation. Make sure each employee’s compensation aligns with the market and your company goals. Also, talk with each employee about their entire compensation package. If an employee still feels they are being unfairly compensated, suggest non-monetary options that may make up the difference.
If you need to hire HR employees, turn to Arlington Resources for help. Contact us to learn more today.